Market Analysis
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Chatbots on the Rise
As you may have imagined, the forecast for the Chatbot market is anticipated to rise year over year. Below, we will highlight some of the key takeaways from these projections. With the meteoric rise of AI-driven technologies over the past ten months, Chatbots are a key portion of this larger AI industry. While these are simply projections and there is no consensus about the specific numbers, it is clear that all research firms forecast exponential growth in this market.
According to Precedence Research, the Chatbot market will grow from $1 billion to nearly $5 billion in the next ten years. It should be noted that this represents one of the most conservative projections we encountered, but we felt we should include it in order to give a rounded forecast.
This demonstrates a compound annual growth rate (CAGR) of nearly 20% year over year.
According to the research, one of the key factors in driving the Chatbot market is the continued growth of e-commerce. E-commerce chatbots are used to drive sales, interact with online customers, fulfill orders and manage issues that arise. They also have the ability to drive business costs much lower through cutting human resources.
Infographic by: https://www.globenewswire.com/
Infographic by: https://www.grandviewresearch.com/
According to Grandview Research, Chatbots are gaining popularity in a range of industries.
This research highlights that while e-commerce is currently dominating that chatbot market, several other industries are worth noting.
Namely, the banking and healthcare sectors. These sectors have been quick to uptake and develop chatbots technologies as they clearly see the potential opportunities chatbots offer.
According to Markets and Markets, the Chatbot market is expected to grow to over $15 billion by 2023.
Unlike Precedence Research, Markets and Markets believes that the chatbot market is already sitting around $5 billion.
While the numbers in these two projections are vastly different, what is important to note is that the CAGR of the market is sits between 20%-25% in almost all research documents we consulted.
Infographic by: https://www.marketsandmarkets.com/
Chatbot Market Drivers
adoption of chatbots in the e-commerce sector
advancements in technologies, specifically AI
Rising demand for immediate customer service and self-service options
Growth in need for customer service with lower costs
Growing use of generative chatbots
Increasing messaging applications with chatbots integration
Chatbot Market Opportunities
rising adoption, investment and development of chatbots by major companies
development of self-learning chatbots
interest in a range of industries for chatbot integration
rise of use in the banking industry
Chatbot Market Restraints
availability of free chatbots
the need for human supervision over chatbots
cimplex and timely set-up and maintence